1. Chapter Twelve Offensive Strategies

2. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-2 Offensive Strategies Strategic market plans Offensive strategic market plans –Invest to grow sales –Improve competitive position –Enter new markets Choosing offensive strategic market plans

3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-3 Strategic Market Plans When are offensive market plans employed? Why are strategic market plans necessary? What three performance objectives do they address? –Share position –Sales growth –Profit performance

4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-4 Product Life Cycle and Offensive and Defensive Strategies Figure 12-2 Market Growth and Offensive and Defensive Strategies

5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-5 Portfolio Analysis and Strategic Market Plans Figure 12-3 Portfolio Analysis and Strategic Market Plans

6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-6 Core Offensive Strategies Core Strategy 1Core Strategy 2Core Strategy 3 Invest to grow sales Invest to improve competitive position Invest to enter new markets Grow in Existing Markets Improve Margins Diversified Growth

7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-7 Offensive Core Strategy 1: Invest to Grow Sales Sub Strategy A Sub Strategy DSub Strategy C Sub Strategy B Grow Market Share Grow Revenue Per Customer Enter New Market Segment Expand Market Demand

8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-8 Offensive Core Strategy 2: Invest to Improve Competitive Position Sub Strategy A Sub Strategy DSub Strategy C Sub Strategy B Improve Customer Loyalty Improve Differentiation Advantage Lower Costs/Improve Marketing Productivity Build Marketing Advantage

9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-9 Offensive Core Strategy 3: Invest to Enter New Markets Sub Strategy A Sub Strategy DSub Strategy C Sub Strategy B Enter Related New Markets Enter Unrelated New Markets Enter New Emerging Markets Develop New Markets

10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-10 Offensive Strategy Selection Why enter new markets? –New source of growth –Smoother performance –Diversification and reduced vulnerability Why invest to grow sales? Why improve competitive position? –Achieve price premiums –Customer retention –Improve margins and NMC

11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-11 Review Strategic market plans Offensive strategic market plans –Invest to grow sales –Improve competitive position –Enter new markets Choosing offensive strategic market plans

12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 12-12 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall